Corporate Social Responsibility's Influence on Product Innovation: Spotlight on the Mediating Role of Employer Branding (A Case Study of Medium and Large Manufacturing Firms in Bushehr City)

Document Type : Research Paper

Authors

1 MSc. Student, Department of Business Management, Faculty of Business and Economics, Persian Gulf University, Bushehr, Iran.

2 Associate Prof., Department of Business Management, Faculty of Business and Economics, Persian Gulf University, Bushehr, Iran.

3 Assistant Prof., Department of Business Management, Faculty of Business and Economics, Persian Gulf University, Bushehr, Iran.

Abstract

Objective
Corporate Social Responsibility (CSR) has become increasingly significant for managerial authorities striving for organizational success. Comprehensive CSR initiatives are essential to address the growing pressures for heightened CSR commitment in corporate entities. These innovations enhance organizational performance within communities and have positive implications for individuals, communities, and state sectors. This study aims to highlight the impact of CSR on product innovation, exploring the mediating role of employer branding within medium and large manufacturing companies of Southern Iran's Bushehr City.
 
Methodology
The study serves an applied purpose and employs a descriptive survey method for data collection. Its focus is on 100 medium and large manufacturing enterprises in Bushehr, Iran. Employing a combination of stratified and convenience sampling techniques, a total of 80 companies were chosen for inclusion in the study. To ensure the reliability of the questionnaire, Cronbach's alpha coefficient was calculated at 94%, and content validity analysis was employed for construct validity. The SmartPLS software was utilized to assess research hypotheses. The research instrument used in this study is a two-part survey. The initial section gathers general and demographic data from the participants, while the latter part includes inquiries for research assessment, utilizing a five-point Likert scale, comprising 46 questions in total. During the study, each company received between 3 to 5 in-person surveys. After the data were collected, an average was computed from each company's responses, and one survey per company was chosen as the foundation for the analysis. Consequently, our evaluation was fundamentally rooted in 80 completed surveys.
 
Findings
The achievements indicated that CSR notably and positively influences both product innovation and employer branding. Yet, the impact of employer branding on product innovation didn't show a significant statistical effect. Moreover, the intervening function of employer branding in the connection between CSR and product innovation didn't demonstrate any statistically meaningful importance.
 
Conclusion
The outcomes of structural equation modeling highlighted the significant and beneficial effect of CSR on product innovation and employer branding in medium to large businesses. Although there wasn't a direct correlation found between employer branding and product innovation, the general results underscored the crucial function of CSR in promoting innovation and brand growth. Companies ought to prioritize social responsibility in their operations, as it is crucial for their survival. It was observed that large corporations are significantly investing in socially responsible actions, proving it's not a burden but rather a competitive advantage. Companies, therefore, need to pour resources into social responsibility initiatives and innovations with the aspiration to meet diverse expectations. Put differently, firms focusing on socially responsible actions tend to innovate more in products and procedures for various reasons, primarily because the orthodox approach is no longer effective. They need to lean on innovation to carry out these practices. Moreover, stakeholders wish to amplify their social involvement which, in turn, bolsters potential innovative responsibility within the companies. Also, activities related to social responsibility compel companies to innovate to meet the requirements of emerging consumers.

Keywords

Main Subjects

References

 
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Journal of Business Management
Volume 15, Issue 4
2023
Pages 722-746

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